To test our hypotheses, we conduct a standardized survey in 53 countries worldwide that includes the questions from the Hofstede survey on cultural dimensions as well as lottery questions on...
Within this paper, we investigate how loss aversion affects financial decisions across different countries in individualist and collectivist cultures, comparing the effect of their contrasting beliefs and interpersonal relationships.
The degree of risk aversion shows significant cross country differences. Moreover, risk attitudes in our sample depend not only on economic conditions but also on cultural factors, as measured by the Hofstede dimensions individualism and uncertainty avoidance.
To test our hypotheses, we conduct a standardized survey in 53 countries worldwide that includes the questions from the Hofstede survey on cultural dimensions as well as lottery questions on loss aversion.
To test our hypotheses, we conduct a standardized survey in 53 countries worldwide that includes the questions from the Hofstede survey on cultural dimensions as well as lottery questions on loss aversion.
Cultural Finance. WORLD SCIENTIFIC. 2020, p. 129 160 Language English Open access status closed Identifiers DOI 10.1142 9789811221958_0007 ISSN 2010 1082 Persistent URL s: sonar.ch global documents 74335
Economics Letters, 2019, 184, 108653. 1.7 13 13 Loss aversion at the aggregate level across countries and its relation to economic fundamentals. Journal of Macroeconomics, 2019, 61, 103136. 1.6 21 14 Lasswell’s legacy revisited: critical perspectives on psychological and behavioural public policy.
We find evidence of loss aversion for a broad set of OECD countries, while the average loss aversion clearly differs across these countries. We find little evidence that these differences could be explained by micro evidence.
Abstract method to estimate loss aversion together with risk aversion an jective probability weighting in a reference dependent utility. Using multiple asset allo cations in the 31 OECD pension funds, we find that our estimates of loss aversion and subjective probability weights are similar to those reported by Wang et al. (2017) and
In summary, the current study demonstrates cultural modulations in economic decision making presented as a pronounced loss aversion in Americans compared to Asians, which was reflected in the ERPs during the evaluation of decision outcomes.
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